How do I get out of my overdraft?

[onlyoranges]

I am stuck in my overdraft. My limit is £2000 and I am usually around £1500 - £1700 overdrawn any money going in just keeps me around that as other amounts go out. I am at my wits end its all I can think about. I have cut back on everything I can. I am even down to £40 a week on food for 6 of us. I used to work ft then had to stop and thats when my problems started. I should have adjusted straight away but I was in hospital for a few months and when I came out I just left my finances for ages. Does anyone have any suggestions. I dread getting close to my limit (which I have done) as then I have no money at all. The bank wanted me to get a loan to clear it but thats not the answer, is it?

I hope you don't mind me saying this, and I await a flaming, but is it such a terrible thing being in your overdraft? You sound like you're on an even keel with it, so long as it's not getting worse, I don't really see the problem.

You sound like you're going through a very tough time, and i wonder if this is worth all the worry?

I know received wisdom is to get rid of debt, but you've taken sensible steps already, and it doesn't sound that disastrous tbh?

Don't overdrafts cost though? I'm not allowed one thanks to crap credit so not sure on this?

A bit, mine is similar size to OP's and I pay about £9 a month. So better to be rid, but not to the point of making OP so stressed.

We agreed with our bank to reduce the allowable overdraft in affordable increments, say £50 per month. We knew we had to live within those means instead of relying on the overdraft. We've ended up with an overdraft of just £100 now, from £1500. It's taken a while but the slow progression helped us get used to the reductions.

pootles everyone should work towards having savings, not being in debt. Endlessly being 'underdeposited' at the bank is NOT the way to run a life. It affects all sorts of things.

It needs to be sorted, even if only a little at a time.

No i agree, special, but OP has said she is ill, to the point of giving up her job, and said this is keeping her up at night. When you are out of work due to ill health, that is not really the time to be trying to get savings together.

Live carefully yes, but OP is already doing that.

I think it is important to be on top of debt and not to be a slave to it. I hI think small incremental steps to reduce the overdraft a bit at a time would be best. If you are top of it, you are more likely to get credit when you do need it, eg if you have to replace the washing machine quickly etc. These are the kind of things that scupper people and make debt get out of control. I have just entered a Debt Management Plan with Step Change so I know of what I speak. I have opened another basic account and one for savings for things that I will need to replace, repairs on the house etc. Debt can spiral very quickly, especially if you have lost your job or can't work.

Are you being charged interest on your overdraft (I assume you are) I think the biggest change will be getting your bank to support you in cutting it and reducing/waiving the interest charges for a time to give you a chance.

Perhaps step-change can help with that.

Anything left you can sell on ebay etc.? Anything you can to reduce utility bills inc water/gas/elec?

it is indeed a balance with what is possible and the worry - but it doesn't all have to be paid off at once. Even £50 a month will move things in the right direction.

heck, a tenner a month helps if that is all that is possible for now.

One thing to watch re an overdraft, is that my bank told every time you contact the bank to reduce your overdraft, they do a credit check. Presumably because technically you're applying for a new overdraft, just for a lesser amount. If I'd realised that I'd have just put all the money in a savings account and done it all at once.